Ares Capital (NASDAQ:ARCC) Given New $20.00 Price Target at Keefe, Bruyette & Woods

Ares Capital (NASDAQ:ARCC) had its target price reduced by investment analysts at Keefe, Bruyette & Woods from $21.00 to $20.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an “outperform” rating on the investment management company’s stock. Keefe, Bruyette & Woods’ price objective would indicate a potential upside of 6.89% from the company’s previous close.

Several other research analysts have also weighed in on ARCC. Wells Fargo & Company reaffirmed an “equal weight” rating and set a $19.00 target price (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. JPMorgan Chase & Co. decreased their price objective on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a report on Thursday, July 2nd. Citizens Jmp lowered their price objective on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 22nd. B. Riley Financial dropped their target price on shares of Ares Capital from $22.00 to $20.00 and set a “buy” rating for the company in a report on Wednesday, April 29th. Finally, Royal Bank Of Canada cut their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $20.50.

Ares Capital Price Performance

NASDAQ:ARCC opened at $18.71 on Thursday. Ares Capital has a 52 week low of $17.40 and a 52 week high of $22.93. The stock’s fifty day moving average is $18.67 and its two-hundred day moving average is $18.92. The company has a market capitalization of $13.43 billion, a P/E ratio of 11.48 and a beta of 0.56. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.47. The business had revenue of $768.00 million during the quarter, compared to analysts’ expectations of $770.19 million. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.During the same period in the prior year, the business posted $0.50 EPS. Equities analysts expect that Ares Capital will post 1.9 EPS for the current year.

Institutional Investors Weigh In On Ares Capital

Several large investors have recently added to or reduced their stakes in the business. Roman Butler Fullerton & Co. lifted its holdings in Ares Capital by 1.9% during the 1st quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock worth $504,000 after buying an additional 528 shares in the last quarter. First Citizens Bank & Trust Co. grew its stake in shares of Ares Capital by 5.3% in the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock worth $213,000 after acquiring an additional 532 shares in the last quarter. Perigon Wealth Management LLC increased its position in shares of Ares Capital by 1.6% during the fourth quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock worth $702,000 after acquiring an additional 547 shares during the period. Diversify Advisory Services LLC increased its position in shares of Ares Capital by 2.0% during the fourth quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock worth $589,000 after acquiring an additional 563 shares during the period. Finally, CWS Financial Advisors LLC raised its stake in shares of Ares Capital by 4.0% in the first quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock valued at $270,000 after acquiring an additional 582 shares in the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Ares Capital

Here are the key news stories impacting Ares Capital this week:

• Positive Sentiment: Net investment income was $359 million, or $0.50 per share, while adjusted earnings of $0.47 per share matched analysts’ estimates. Total investment income rose to $768 million from $745 million a year earlier. Ares Capital second-quarter results
• Positive Sentiment: The board declared a quarterly dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The payout supports ARCC’s roughly 10% yield and reinforces its appeal to income-focused investors. Ares Capital dividend announcement
• Positive Sentiment: Management emphasized stable recurring income, strong liquidity and new investment commitments of approximately $2.6 billion, including $2.2 billion funded. ARCC ended the quarter with $383 million in cash and about $6.7 billion of borrowing capacity. Ares Capital earnings call highlights
• Neutral Sentiment: Revenue of $768 million was slightly below the $770.19 million consensus, and earnings declined from $0.50 per share in the year-ago quarter. The result was broadly in line with expectations, limiting the surprise factor. Ares Capital key metrics comparison
• Negative Sentiment: GAAP net income fell to $171 million, or $0.24 per share, from $361 million, or $0.52 per share, a year earlier, as realized and unrealized losses weighed on results. Net asset value also declined to $19.35 per share from $19.94 at year-end 2025. Ares Capital losses hit earnings
• Negative Sentiment: Investors remain concerned that a credit downturn or recession could increase portfolio defaults, reduce asset values and put pressure on ARCC’s high-yield dividend. Lower benchmark interest rates could also weigh on future investment income. Credit downturn risk to Ares Capital dividend

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.